IHSG Surges 1% Amid Escalating Iran-US Tensions and US Inflation Spike
The Composite Stock Price Index (IHSG) strengthened again during trading on Thursday (11/6/2026). As of 09:22 Western Indonesia Time, the IHSG surged 1.03% to a position of 5,963.01, extending a rally after closing more than 2% higher the previous day.
Based on trading data from the Indonesia Stock Exchange (BEI), 356 shares strengthened, 228 shares weakened, and 375 shares remained stagnant. The transaction value reached Rp3.62 trillion with a trading volume of 5.03 billion shares across 403,900 transactions.
Volatility remains quite high today. The IHSG had touched its lowest level at 5,850.58 before eventually soaring more than 1%.
Market participants continue to observe global sentiment developments, including international financial market dynamics and foreign capital flow movements. During yesterday’s trading, foreign investors were recorded as posting a net sell of Rp3.13 trillion across all markets, even though the IHSG managed to close sharply higher.
Indonesia’s financial market today will still face dynamics ranging from war to investors continuing to monitor domestic fiscal resilience and the continuation of global macroeconomics. The IHSG and the rupiah are in a stage of strengthening. However, the rally could be disrupted by two pieces of bad news from the United States, namely new attacks by the US military and soaring US inflation.
The Iran vs. US war is heating up again after the United States began launching strikes on Iran on Wednesday, according to a statement from US Central Command (CENTCOM). In a post on platform X, CENTCOM stated that the US military began “launching additional self-defence strikes at 5:15 p.m. ET against a number of targets in Iran at the direction of the Commander-in-Chief.” The post confirmed that the strikes were carried out “in response to Iran’s unprovoked and continued aggression.”
Iranian state media reported that Iran has targeted US ships in the Strait of Hormuz with missile and drone attacks. These latest strikes come after US President Donald Trump said earlier on Wednesday that the US would hit Iran “very hard” again, escalating his public threats while continuing to pressure Tehran to sign a deal. “We hit them hard yesterday, and we will hit them hard again today,” Trump said during the Secure America Act signing event at the White House.
Meanwhile, the US Bureau of Labor Statistics on Wednesday evening released inflation data for the May 2026 period showing an annual inflation acceleration to 4.2%. This figure rose from 3.8% in April and set a new record high since April 2023. On a monthly basis, headline inflation recorded a 0.5% increase. This main inflation surge was specifically dominated by a soaring energy price index, which rose 3.9% monthly or 23.5% annually due to commodity market pressure. Conversely, core inflation, which excludes the energy and food sectors, appeared more moderate with a 0.2% monthly and 2.9% annual increase.
Responding to yesterday’s inflation data, market participants are projecting that The Fed will hold the benchmark interest rate at the upcoming 17 June meeting, with the potential for a new rate hike now predicted to be postponed until December. Amid these tightening dynamics, the new Fed Chair, Kevin Warsh, instead indicated that interest rates have room to move lower in the future. Warsh believes that a surge in productivity from the utilisation of artificial intelligence technology will have a significant disinflationary impact on the overall economy.